With the engine not being ran for a couple of hours (cold), how much fluid should be in the reservoir? I see a line about an inch from the bottom and assuming this is where the fluid level should be. Thanks for the help.
Yup. Fill up your reservoir to where it should be (the full level line). Watch your fluid levels and if they go down after a while you've got a leak. The level lines are recessed on the bottle and are marked.
Whats most important is that the radiator itself (not the clear plastic reservoir) is filled completely to the top.
The coolant reservoir / plastic expansion tank is just for expanding and contracting pressure - despite how it looks at first glance the coolant DOES NOT pump or cycle through it.
Think of the radiator as a set of lungs. The coolant reservoir will go up or down as the temp changes. You only need it to be half full but you need the actual radiator to be completely full.
You check the radiator by unscrewing the top cap ONLY when the engine is completely cold - for instance, in the morning before it has been ran or some equivalent time.